How to Make Your Business Financially Fit

Steve is a successful business owner who takes his business very seriously. He focuses on growing his business and has several employees. People love his products and services and are sharing them with others. What Steve is struggling with is making his business financially fit. It seems like his business is always tight, and he is barely making it each month. Sound familiar?

This is what we hear from many business owners. They want to grow and be successful, but they are missing some tools to assist them in staying profitable. Here are four tools you can implement into your business to be financially fit.

1. Know Your Overhead Cost – It is easy to know what the cost is of each product or service you sell, but many business owners fail to include their overhead cost when figuring their numbers.

Profitable businesses know what their profit is on each product or service after their overhead cost is included. Overhead costs often include, administrative expenses like office supplies. Other expenses may also include marketing and advertising, employee related, facilities and equipment, vehicle related expenses, insurance, and tax related expenses.

Companies should know the percentage of breakdown related to each product sold, each procedure or job performed, or each service that is provided.

This allows the business owner to price their products and services at the right price. If the overhead cost is not included, it can cause the business to lose money on each sale that they are making.

2. Manage Your Cash Flow Regularly – Cash flow is so important for a financially fit business. If a company does not have a good eye on their cash flow, it can cause them to struggle every month.

Knowing what money you have coming in, and what money you have going out each week and each month will help you to know what you need to bring in each week to manage the bills that are going out.

It will also assist you with meeting goals like buying that piece of equipment that will make you more profitable or investing the money to increase overall profitability. Look at a statement of cash flows; a statement of cash flows will show you what money is coming in and what money is going out each month.

3. Pay Attention to Your Numbers Each Month -Waiting until the end of the year to get your bookkeeping in place for your tax accountant can be a very costly mistake. A financially fit business pays very close attention to how the business is doing on a weekly and monthly basis.

They know how much they need to make each week in order to be a profitable business. They also look at their financials each month to see what they need to do in order to improve the next month overall performance.

If a company fails to do this, they have no way of making important business decisions because they don’t know where they are at. Not know where your business is at will cause your business to fail. If a business isn’t growing, they are dying.

4. Know Your Financial Ratios – Many business owners don’t know what business ratios they need to track in order to be profitable. Knowing the right ratios can help a business owner know what decisions they need to make to move their business in the right direction.

As an example, one of the ratios that a business needs to track is the current ratio. This ratio will help them track how healthy their business is. A healthy business will have at least a 2 to 1 ratio, so $2 in assets for every $1 in liabilities. If the business is carrying inventory, it is important to have a 4 to 1 ratio.

To determine the current ratio, take the current assets and divide them by current liabilities (Current Assets/Current Liabilities.) Once you have the current ratio, it can be tracked each month to determine if your company is moving in a good direction or if you need to make some changes in your business to move it in the right direction.

Implementing these tools into a business can make a huge difference on how profitable a business is. A small hinge on a gate can help a large gate swing back and forth, just as a small step in the right direction can make a huge impact on a business

Τεράστια ποικιλία από αφυγραντηρες

New Business Startup Checklist

STARTUP CHECKLIST OUTLINE

INTRODUCTION

BUDGETS

LEGAL STRUCTURE

NOT-FOR-PROFIT ISSUES

DBA

TAX ID

PAYROLL REGISTRATION & COMPLIANCE

INDEPENDENT CONTRACTOR VS EMPLOYEE

INSURANCE

SALES TAX

BOOKS AND RECORDS

INTRODUCTION

There are a few fundamentals that every business must have in order to operate as a business. First and foremost is the fact that your primary objective is turning a profit. Even the IRS takes the position that if all you do is continuously generate losses they will consider your “business” a hobby and disallow your losses. There not only needs to be a profit motive but a profit generated. This may seem like a no-brainer to you but in my 30+ years of experience I have seen far too many startup generate nothing but expenses and there are some good reasons for that which I will cover next.

Before quitting your day job to open your 1st business I suggest checking off on a few items of importance. The first item on your list is to have a product or service that people will actually pay for. Not something you think they will pay for because in the end it doesn’t matter what you think, it’s what “they” think. That’s the plain, simple truth. If you’re not sure about it then before you spend tons of cash and bankrupt yourself do some testing. Use your circle of friends and family and then their circle of friends and family. It’s important to be able to get people that don’t already know, like and trust you to buy. If you can show that without a shadow of a doubt that you have something that will generate revenue continue reading. If not the rest of this article is of no use to you.

BUDGETS

Once you determine that you have a product or service that will generate revenue these are the next steps you need to take and why:

1: Prepare a monthly personal expense budget.

You need to determine how much you need to generate in distributions from your business to at least meet your monthly outlay. Unless you are already out of work with no other income options you need to keep paying your bills. Don’t just quit your job unless you have at least a year’s worth of savings to carry you through.

The reason for this is that without a cushion you will feel the stress of having to make money. Stress clouds our judgement and drains our energy. You always need to be in tip-top shape mentally and physically. You’re going to have enough distractions and obstacles to begin with and don’t need to add any self imposed burdens on yourself. Additionally, knowing what you need is 1,000 times better that operating in the dark. Knowing your numbers is essential if you want to run a successful enterprise.

On the next page is a simple worksheet to help you determine your monthly nut. Don’t make the mistake of omitting things like meals and entertainment, vacations, holidays, birthdays and the all important surprises that are sure to occur like car and home repairs. If you have children leave a nice big fudge factor. This is just your expenses, not revenue and not even broken out on a monthly basis. It’s just an estimate so don’t go into needless details. Keep it simple!

PERSONAL MONTHLY EXPENSE SCHEDULE

CATEGORY

FOOD

CLOTHING

RENT/MORTGAGE

DWELLING REPAIRS/IMPROVEMENTS

CAR PAYMENTS

CAR REPAIRS/MAINTENANCE

GAS

AUTO INSURANCE

UTILITIES

CELL PHONE

BIRTHDAYS/HOLIDAYS/VACATION

DOCTORS/DENTIST

OTHER INSURANCE

LAUNDRY

LOANS

CREDIT CARD PAYMENTS

MISC-FUDGE FACTORS

TOTAL

After checking off the personal expense budget one of two things will happen.

Reality will set in and you will realize that starting a business is a big risk not worth taking or to proceed with caution.
You want to go on to the second item on the list.

2: Prepare a schedule of startup cost.

These are all the expenses and capital investments associated with getting the business off the ground before you start generating revenue. This is another potential blow to your plans on starting a business. Reason being is that entrepreneurs are full of enthusiasm and optimism which is needed but also one of the characteristics that get us into trouble. Getting the numbers down on paper and reviewing them accomplish a few objectives. It brings us down to earth revealing exactly what’s at stake financially. It’s also the first step in learning how to know your numbers. You will learn that part of running a successful business is knowing your numbers.

BUSINESS STARTUP COST

INVENTORY

1ST MONTH RENT/RENT SECURITY

UTILITY DEPOSIT

EQUIPMENT

WEBSITE

FURNITURE

COMPUTER/OFFICE SUPPLIES

LEGAL/ACCOUNTING

PRINTING

ADVERTISING

TRAVEL

TOTAL

3: Prepare a schedule of monthly business expenses.

Going back to fundamentals, you need to generate positive cash flow which is not the same as generating revenue. Positive cash flow occurs when your revenue exceeds your expenses. This must exceed expenses (net profit) to the point that it covers your personal expenses, the 1st schedule on the list. If these numbers don’t work you’re going to put stress on yourself and nothing positive comes from stress. That’s why I strongly suggest having the 1 year expense cushion.

I realize that these numbers are only estimates and that your actual expenses will be different. I highly recommend overestimating these because inevitably you will get hit with unexpected expenses, both business and personal.

MONTHLY BUSINESS EXPENSES

RENT

UTILITIES

SUBSCRIPTIONS (WEB HOSTING,

MARKETING

PAYROLL

PAYROLL TAXES

ACCOUNTING & BOOKKEEPING

OFFICE

INSURANCE

AUTO (GAS, REPAIRS & INSURANCE)

TRAVEL

TOTAL

This is a simple list outlining the basic issues every small business must address. It’s highly advisable that you know and have a general understanding all of these areas before making any decisions about formally starting your business. I can guarantee that if you don’t address these issues now you will be forced to address them later, hopefully not under duress when you are more likely to make mistakes.

Legal Structure:

These are your options when it comes to your legal structure as a business. If you don’t formally choose one of these you are a Sole Proprietor by default. If you don’t formally set up your Not-For-Profit you can face some serious legal repercussions. Before you do anything seek the advice of a good accountant. I say accountant and not an attorney because most attorneys are not versed in tax strategies and choosing the wrong structure can cost you a significant amount of money.

Sole Proprietor

Partnership

Corporation

“S” Corp

LLC

Not for Profit

Most small businesses should be structured as an “S Corp” for legal and tax planning purposes. I’ve seen many new business owners choose to be structured as an LLC without knowing the tax implications. I have included an article on being taxes as an LLC and self employed vs being taxed as an “S Corp”.

Not for Profit issues:

It may seem obvious but you would be surprised by how many individuals mistakenly think they can set up a Not for Profit to make money. Not for Profits do occasionally pay salaries if it’s in their budget but there seems to be a general misunderstanding about how and why these entities are created. That is why I am addressing it here.

There are several types of Not for Profit organizations. Many people believe that every Not for Profit organization can accept tax deductible donations. They may be able to accept donations but in order for them to be tax deductible it must be set up as a 501 (C) 3 corporation. A 501(C) 3 organization is not simple to set up and must first be organized under state law and then go through a rigorous IRS process to be approved as a charity. The organization is exempt from Federal and State income taxes as long as the money received is consistent with it’s Not for Profit purpose. I believe that this is where the confusion takes place.

Case in point-The NCAA is a Not-for-Profit college basketball tournament. They receive millions of dollars in advertising revenue from the tournament and had to pay millions of dollars in corporate income tax on that revenue because it was what the IRS considers “Unrelated business income”. It had nothing to do with the organizations Not-for-profit status.

So if you want to start a Not-For-Profit do it because you want to make a difference, not because you want to make money.

DBA- another misunderstood concept. A DBA (Doing business as) is for a sole proprietor which distinguishes the individual from the business. There is no legal separation with for a sole proprietor meaning that the owner is personally legally liable for any business conducted. A DBA is usually your business name, registered with a local jurisdiction such as a county clerk. In order to set up a business bank account you will need to get a DBA.

Tax identification # – You need this to open a bank account and conduct business when you form a business entity beyond being a sole proprietor. You also need a tax id number if you’re a sole proprietor with employees. You get a tax id# by registering with IRS.

Payroll registration -If you are paying wages either to yourself or employees you need to notify IRS (usually when you apply for your tax ID) and the state you are doing business in. Each state requires you register to file and pay unemployment taxes and requires a separate registration number beside your Federal Tax ID#.

Payroll Compliance – This is a big one and way to much to cover here but here are the bullet points:

Hiring- Forms W4 and I9

Withholding and employment taxes

Form filing

Remitting “trust fund” and employment taxes

Employee vs. Independent Contractor – I mention this because it’s a very big topic with IRS and state agencies and insurance companies. It comes down to payroll taxes and insurance risks so “they” are scrutinizing these classifications with a microscope. It’s your responsibility to learn what the difference is and how you want to classify those workers in the “grey” areas. A mistake here can cost you plenty.

Insurance – A really good advisor is needed on issues from commercial liability, truck and auto, etc. If you have payroll you MUST have workers compensation AND Disability. For some reason many employers forget about the disability part and I’ve seen way too many bad brokers get the workers compensation set up and forget about the disability.

Sales tax – A lot of businesses sell goods and services that are not subject to sales tax. Don’t assume you’re one of them. Sales tax probably the most complicated and hardest tax to calculate and fully comply with. My advice is to assume everything is taxable. Check with your state agency for the details including if you need to be registered as a sales tax vendor or not.

Books & Records – one of the easiest concepts to learn and one that wreaks fear in any business owner that has received a letter stating something to the effect of “We command you to bring your books and records to IRS agent… ”

Every business, and every organization for that matter needs to keep proper books and records. Very not sexy and boring but required. I recommend getting IRS Publication 583 “Starting a business and keeping records” for starters.

This is just a beginning. If you feel overwhelmed at this point I suggest keeping your job instead of starting a business. It takes a lot to be your own boss. It sounds like fun but until you try it for real you can never truly know all that’s involved.

Small Business Benefits of Training Employees

Small businesses aspiring for growth need to keep an eye on performance improvement through online business training courses. To measure up to the ever evolving business world, small businesses need new skills to facilitate workforce gains and to generally meet the competent needs of operations in tandem with its competitors.

Small business training for employees provides an additional skill and exposure to the individuals and to the business. It is more flexible and less strenuous to do an online business training course. This consequently improves your company to continue effectively. Most small businesses fail to recognise the beneficial aspects of training its employees. Among many other advantages that come with training are the following benefits:

To Effectively Improve Your Company’s Competence

Training your employees will result in a better customer service, improved business skills, and growth in productivity. This ultimately makes your business more competent and competitive in the market. It is important to always advance the skills of the employees as the business world is dynamic and overly competitive. The direct tragedy of non-trained employees is the incompetence to match up the necessities of a contemporary society. It is important to consider an online business training course if the difficulty is time or cost of doing a recommended training.

Improving Loyalty and Staff Retention

As a business, staff retention is a saving to the business and its future prospects. Employees have their own aspirations for growth and they may want to venture out to look for that satisfaction. However, if the training opportunity is available to them, they find their professional growth in the business and are likely to stay longer. It is a fact that such training will definitely add them new skills and promote their contribution to the business as well as building their self-esteem. Giving them a chance to improve their skills makes them realise that you value them enough to invest in them.

Improved Business Prospects and Profits

The ultimate objective of running a business is to maximise an opportunity to make profits. Training employees makes them more competent and qualified to promote your business in the marketplace. This will have an effect and an increased business means more profits.

Makes Your Business Competitive

Stagnating is the worst effect that can kill your business, so by ensuring that your staff are constantly advancing, you continue to grow in business and remain competitive within the industry. It is expensive and very disorienting to employ new staff. An online business course for your employees can make them more eligible for internal promotions. Unlike new employees, you will have the benefit of a complete and knowledgeable staff for your business, who are people you know and you can trust.

Exposes Business Weaknesses and Skill Gaps

Training makes the business realise what they have been doing wrong and henceforth, the business can more easily identify any skill gaps in the market and even within the existing employees. This will propel your business to work on filling the gaps which will assist the staff to fulfil their role effectively.

Conclusion

Training is therefore a valuable and profound investment for the business. For the many businesses that may not have adequate time, an online business training course would be more appropriate. The staff will have a much higher sense of job satisfaction, which will improve their motivation towards their work and the business generally.

The Home Based Business Explosion Is Upon Us!

INTRODUCTION

Perhaps I should start by asking the question “What is a Home Based Business? This is any business operated from the comfort of the residential home of the owner.

The next question is who is a Home Based Business owner? This refers to an Entrepreneur who decides to run his business from the comfort of his home.

I decided to clarify these terms because there is a huge difference between a Home Based Business owner and a Home worker who might be working with a government/private organization but decides to be working from home once or twice during the week.

Evolution of Home based Business

Many businesses operated from home usually start as a Micro or Small Enterprise. Some eventually metamorphose into Medium Scale Enterprise and others eventually grow into quite large companies.

The desire by Entrepreneurs to start operating businesses from home actually started in the 1980s. During this period, a lot of things combined to precipitate this massive desire by people to own Home based businesses.

In the main, the combination of many factors like socio- economic change, improved technology and new management thinking resulted in the loss of otherwise permanent paid employment and this encouraged people to attempt to revalidate their freedom by opting to set up a business at home.

The advent of new management thinking and theories like downsizing to make an organization Lean and more agile and efficient created fears in the mind of the average worker

So mass lay- offs helped create the right environment for some workers to go it alone and set up a Home based business.

The period of late 1990 to 2010 can be appropriately described as the period of massive explosion in the establishment of businesses at home. The use of Computer, Internet and Mobile Technology helped in the growth of this idea.

I strongly believe the idea of setting up business at home will continue to be positive and will remain so for a long time.

The continued upsurge in the desire of people to own businesses has attracted the attention of Universities and other higher institutions. They have responded by introducing different courses and programs on Entrepreneurial studies to cater for these needs.

Unlike earlier belief that businesses run from home are not well managed and don’t make good money, the present situation is that many Entrepreneurs motivated to set up business at home now have college degrees including a lot of high level professionals with business exposure.

The entrepreneurial spirit is innate in all of us and we only need to be adequately motivated to take the necessary action.

It’s really an exciting world out there.

THE HOME BASED BUSINESS EXPLOSION

As stated earlier, though the crave for running businesses from home started way back in the 1980s, what can be termed the explosion of this way of doing business was between the late 1990s and the first decade of the new millennium.(2010+)

This coincided with the time when the setting up of a Home based business became a Fad. According to Mr Lewis of the National Association of Home Based Businesses, Home based business in the United States grew from about 6 million in 1984 to 23 million by 2007.

With the help of modern technology like computers, mobile phones, printers and the huge power of the internet, more work is being done virtually than ever before and more global businesses are routinely being run from home.

According to the 2012 GEM report, 69 percent of American entrepreneurs start their business at home from either a spare room in the house, the dining table or from the garage. The report further revealed that more than 50 percent of entrepreneurs continue to operate from home even after the business has taken off successfully and stabilized.

Again according to Mr. Lewis of the National Association of Home Based Businesses, his own companies do training in 20 countries, import eyeglass frames from China and also develop condominiums.

Mr. Nuyten of the Home Based Business Statistics in America quoted the following statistics as at 2012:

38 million Businesses were operating from residential homes in America

A new business is started from home every 12 seconds in the United States

The Home Based Business sector in the United States earned Four Hundred and Twenty Seven billion dollars.

It revealed that 70 percent of Americans would like to be self- employed.

Entrepreneurship has become entrenched in the psyche of the average person. The Baylor University study of 2005 revealed then that more than 5 million jobs had been lost in Fortune 500 companies since 1980 while 34 million were created in small businesses.

The United States Census Bureau data of October 2012, also revealed that the number of businesses being operated from home have been on the rise since 1999.

The United Kingdom Experience

The continued growth in the Home based business sector appears to be a global phenomenon as the report from the United Kingdom will show shortly.

The United Kingdom department of Business, Innovation and Skills released a report titled ” Backing for Home Business” which revealed that 2.9 million home based businesses in the United Kingdom contributed 300 billion pounds sterling to the UK economy. The report also stated that 70 percent of all new businesses in the United Kingdom started from home.

According to Home Business report compiled by Enterprise Nation, 1,400 new businesses are started from home each week.

This report also confirmed that out of a total of 4.5 million small and medium enterprises, 2.1 million are Home based businesses.

Factors contributing to the growth of Home Based Businesses

There are many factors motivating people to set up Home based businesses such as:

Losing one’s job

Being laid off in a time of economic downturn could be very devastating. With difficulty in getting new job offers, the next best thing would be to start a Home based business.

Flexible lifestyle

You are your own Boss. Literally, you can come and go as you please. You maintain better work/family balance. There are no set opening and closing times. You go for lunch and vacation when you feel like

Reduction in Stress level

The daily commuting, especially with the present heavy fuel costs is avoided. Also those train/bus rides to and from work with all sorts of characters is avoided.

No corporate office politics

You are not thinking of how to always please the boss and climb the corporate ladder. You don’t have to engage with difficult colleagues. Best of all, there are no dress codes.

Cheaper start up and running costs

It’s cheaper to set up a Home based business. A serious entrepreneur can get started with just $5,000. The main requirements could just be a computer, mobile phone, printer and a good internet connection. No rent of physical store space.

Secondary Income

Some entrepreneurs set up business at home to bring in extra income to support a day job. Some people start the business as a part time hobby. Eventually the business may become very successful and the entrepreneur will now take the decision to resign from the day job.

Be your own boss

You are your own boss. You have the freedom to do things the way you want. There is nobody breathing down your neck reminding you of targets.

Job dissatisfaction

An otherwise loyal employee may become unhappy with the company for lack of promotion and motivation. The next thought is to set up a Home based business.

Opportunity to achieve Self actualization

Having your own business gives you the opportunity to make as much money as you desire. This of course depends on how much money you want to make and the amount of time and effort you decide to invest in the business.

Advantages of running a business from home

The desire to get out of the rat race, avoid the daily grind coupled with the power of modern technology make telecommuting more productive.

Together with some of the factors already mentioned above, listed below are more advantages:

Tax advantages

You can deduct some of your expenses as business expenses. These could be utility bills, insurance, mortgage and property tax.

Opportunities for Professional improvement

It is safe to assume that with the day to day running of your business, you will develop more business management skills.

Multiple streams of Income

With more time to yourself and the freedom to follow your lead, you can decide to explore other areas of interest and create multiple streams of income.

Disadvantages of running a business from home.

In spite of the almost glamorous attraction of Entrepreneurship, there are some disadvantages which must be effectively managed in order to improve the chances of success.

Irregular Income

For some one that had been used to regular pay checks, having to go through some weeks without income could be a huge challenge.

Lack of adequate space

This could arise where work sometimes spills into the home space

Nearness of Family and Friends

The nearness of family and friends could become a distraction if not properly managed.

Lack of Fringe benefits

Fringe benefits like health and dental insurance and paid vacations which were hitherto being enjoyed in paid employment are no longer available.

Friction with neighbors

The type of business you are involved in could create friction with neighbors due to noise pollution and lack of packing space

Health Issues

Staying glued to the computer screen and in a small space may affect health and fitness. So try and create time for exercise and recreation.

Ideas for a Home Based Business

Finding a home based business that is interesting to you is important! The last thing you want is a home based business that you have no passion about and dread working on every day. The following suggestions for a home based business can be improved upon and be expanded; it only takes your imagination.

The largest home based business opportunity is sales. You can run a home based business selling candles. You can run a home based business selling make-up. You can run a home based business selling anything under the sun.

A hybrid home based business is becoming more popular for sales professionals who work for a specific company. Certain companies allow their sales force to work from the comfort of their own home.

Some people make a home based business by selling products on the internet. eBay is a large marketplace that the home based entrepreneur has flourish with. Other sales opportunities on the internet include running your own website to sell your own crafts or artisan products.

Another home based business that offers a plethora of opportunities is the service industry. Offering services to companies or individuals is a great way to run a home based business. Some common examples of services that people have made into a home based business are medical billing services, accounting services and marketing services. Any skill that another person may not have can be offered as a service including computer technical help or tutoring help.

There are many unique service-oriented home based businesses like offering a pet clean up service or offering a daily faxes to local business for some of the area restaurants.

The key to offering a service is to be able to offer it for less than the company or person is paying at the moment and offering a service that is value added. The unique service of offering a pet clean up service may not have a monetary value initially to the person, but it does have a time associated with it as well as the unwanted task factor.

If you are good at budgeting and finding ways to save a penny you can create a home based business offering your services to people or business you have a hard time finding those areas that they can save. Your service should be able to save a person or business more money than you charge them.

Working in a particular industry for a long time will give you an opportunity to start a home based business for the industry you are. Or you can start a home based business to offer services to customers that have problem dealing with this type of company. For example, dealing with an insurance agency can be a nightmare. If you have the expertise you can get paid for giving advice on how to deal with certain situations.

You can make a home based business by taking your passion in life and finding ways to make other people with the same passion ways to pursue their passion.

One of the best home based business adventures includes pursuing a hobby that is interesting to you. If you like dogs, golf, or you name it you can make a great home based business. All it takes is finding out what people want with the hobby you are interested and determining how to fulfill their want. If you like to take photos make a home based business taking and selling pictures. You can become a photographer for weddings, birthdays or any other special occasion. You can also set up a home based business playing with animals by offering a pet sitting business.

There are many home based businesses out there with people working online. Learning to design web sites and program can give you an advantage. However, you can also make a home based business by doing tasks programmers and designers don’t have time to do like writing articles or performing data entry.

There are many companies that are beginning to look at persons who want to have a home based business and telecommute. These jobs are not always readily available on most employment websites, but when you are surfing the web take a look at the employment offers web hosting or other computer based companies have available. Many of these companies have customer service positions they contract out to those wanting a home based business.

The last idea I will leave with you for a home based business includes a life style change for most people. Running a farm whether it is for horses or alpacas or even cows can be a good home based business. It can also be a good change of pace from the corporate world.

Home-Based Business Leads

Owning your own home-based business can be a dream come true for many people. And spending less money on gas – which is one reason people decide to stay home and having more time to spend with your family is another reason people decide to have their own home-based business are growing factors in the home-based business expansion that the home-based businesses are experiencing today.

But how do you get started owning your home-based business? What home-based business leads. Home-based business leads will give you all the: what, where and when and even how to owning your own home based business. These home-based business leads can be found all over the Internet if you know where to look and we’ll get you started on your way to owning a home based business.

Depending on what type of home-based business you are looking for, whether it is selling products or services, or a business where you help others set up their own businesses these home-based business leads will show you where to begin and what to do from there.

There are many companies that strictly work with home-based businesses that are called lead generators and they provide home-based business leads for the home-based business worker. Sometimes these services cost a minimal amount, sometimes you pay a monthly fee, sometimes a yearly fee and if you search long enough you may be able to find a free service for home-based business leads. These leads will show you what you can do to make a good living at a home-based business. Some of these leads will direct you directly to customers were looking for your product or services. Other leads generated from home-based business leads will only show you what to do to get the leads and then you’re on your own with what to do with them.

Home-based business leads will show you where to find customers and what types of businesses are popular at the moment. Currently businesses which promote weight loss, other work at home businesses, making money from home and ways to quit your 9-to-5 job are all popular at the moment. These are home-based business leads in the lead generators will show you where to find the information you need to either sell this information on your website or to help others began their own home-based business. People will pay you to help them start their own home-based business. And not only do you get the income from helping others help themselves, but you get the appreciation and gratitude and just that good feeling of helping others being able to help themselves. By helping others get away from the grind of the rat race, by being able to stay home with their families by working at home at a home-based business.

Beginning with the home-based business leads you can help yourself and boost your own home-based business with these home-based business leads, you can also help others increase their income with the home-based business leads. But home-based business leads are what everyone needs to begin a home-based business.

Online Presence And Reputation Are Key Factors Behind Successful Businesses

Online directories can be quite beneficial for startups and small business firms. Business owners just need to understand how online business directories work. Online directories are site submission services which allow businesses’ sites to be added to particular categories where the websites become easy for interested visitors to search.

Web directories and their importance

Online business directories let the target traffic to search for businesses and websites which they want to know more about or find interesting. Adding a business’s site to an online directory can increase the site’s online visibility. Moreover, online business directories can make it simple and easy to find what people are searching for.

The concept of such business directories is a simple one. These directories are quite similar to the Yellow Pages. Online business directories are just listing places for business websites. Any kind of site can be listed in online directories. Some directories are enormous and cover all topics that people can create websites for. On the other hand, there are small online directories that cover only a particular niche.

Get listed in a web directory to improve your business performance

To keep it straight, online business directories can direct people to any site which they want to find. People just need to search for particular categories or different types of categories till they find the kind of sites they are searching for. When someone browses through an online directory, they will be given lists of sites which relate to their keyword. They will also be given a list of links to the sites. These links will also have short descriptions about the websites. People can go through these descriptions and decide which one they want to choose.

Online reputation is vital any business these days

Exposure is a vital requirement of all kinds of marketing strategies. In fact, when people are more exposed to a business, they most likely will make use of the business’s services. When a business doesn’t have a proper online presence and online reputation, even its existence might not be known to people. If this happens, then business has great chances to become a failure.

Listing businesses’ sites in online business directories can help sites in gaining exposure. Tons of online visitors get to make use of such directories for finding things that interest them. These are prospect buyers who actively search for sites which are related to services or products that one’s business may be all about. Web directories can expose businesses to the target visitors. Hence, websites will get an increased amount of target online traffic. Apart from getting listed in online business directories, it is also important for businesses to have positive reviews online.

What more you need to boost your business

There are a few important reasons why businesses should take advantage of reputable online business directories for getting more prospects. On a daily basis, prospective customers keep searching for different types of business for finding solutions to their problems. This is when they may come across online business directories that may list of the types of sites they are in need of.

Make sure your business has positive reviews online

When potential customers find businesses on the internet, they go through online reviews for making sure that they get in touch with the right company or people. When businesses have good reviews on the internet can build their credibility. Such reviews can also let people know that businesses are reliable so that they can trust them. In addition to increased online exposure and positive reviews, online business directories don’t bother people’s budget.

Money matters at the end of the day

There are loads of online directories which can be used by business owners for free to list their businesses. This is one aspect that makes online directories one best marketing strategies, when it comes to running a business successfully. Any small business owner who wants to improve the online reputation and presence of his or her business may utilize the service of an online business directory.

Expansion Pitfalls All Small Businesses Must Avoid

A great number of small business owners have a constant urge to expand. Of course, the mere idea of expanding and becoming a “big” business known to thousands and millions of people is fascinating. However, expansion is not all about finding a new office space and hiring new employees to fill the vacant seats.

There is much more to expansion than most small business owners realize. It is unfortunate that a larger population of these business owners is only focused on the benefits of expanding while completely omitting the challenges that entail business expansion. Let’s take a look at some of the most common challenges, concerns and considerations before you expand your small business.

Major Pitfalls to Avoid before Expanding a Small Business

Outdated Information of Market Conditions

Too often, the decision to expand taken by most small business owners is based on information that is many months old. The important thing to consider here is continuous market research. An idea that seemed like it will lead the market a few months ago might be an average offering today.

For example, you might have landed in the market with a unique product, and its sudden popularity might make you think you should expand as soon as possible. What you don’t realize is that the acceptance and popularity rate of your product can diminish with time. The big reason behind that is the competitors who can imitate anything that you have created.

It does not matter if you have patented the technology, method or the product itself before launching it. Your competitors will always find some way to imitate and emulate your products. A great example of this is Apple, the tech giant that patented the touchscreen technology. You can see there are more non-Apple touchscreen smartphones in the world today than Apple’s own iPhone.

Regional Limitations

When you are expanding your business into new territories, you must know them well. You cannot expect people to react to your offerings, marketing methods, advertising tactics in the same way everywhere. In fact, cultural considerations are an extremely important consideration when businesses are expanding.

You don’t have to be expanding to a completely new country to consider culture. There are many things that people in one state might love and people in another state completely hate.

These considerations have to be made based on the type of business you have. If your business has some cultural dependencies, you have to be very careful with where you are thinking of expanding your business operations.

Cash Flow Challenges

You need to be on top of your cash flow before you expand. Cash flow is important for any business, but it is essential when it comes time for expansion. It does not matter how much money you are expecting to come into the business after making the expansion move; it is going to require a lot of money upfront too.

This is the time when you have to stop thinking about the revenue and start focusing on your income. Your revenue does not tell you how feasible it is for you to expand your business. It is the money that you can use without affecting your current operations that matter in the expansion.

Look at your profits and see how big they are. If your profits are small, don’t just assume that things will be fine and you should just make a move. You don’t want to create a situation where not only you fail with expansion but affect your existing operations as well.

Technological Issues

The way modern businesses operate, technology goes wherever your business goes. Many small business owners think of expansion only regarding new office space, furniture, and new employees, but that’s not the case. Today’s businesses rely heavily on technologies, both hardware, and software. When your business expands, you have to support it with better hardware but what’s more important is the software side.

Unless you are using a cloud solution for your database and other internal tasks and activities, you will have to spend a lot of time in arranging the right system. Syncing information across multiple locations and managing bigger databases with more accounts and information can be a challenge in the beginning.

Overestimating Business Popularity

Some businesses that start with a unique idea and get attention from media fast are able to reap great benefits from sudden demand spikes. This situation often makes business owners feel that they should expand as soon as possible. What they don’t realize is that this is only the “trial” period for customers in their minds.

Even if they like your product, in the beginning, it does not mean they have put full trust in your offerings. A onetime purchase does not translate to loyal customers and repetitive purchases. You might have received a great response from customers when you started the business but wait for some time to know if your customers have started to repeat.

It is only the number of repeat customers that can tell you if your product/service has been a success. It could be a nightmare for you if you start getting negative reviews from your first customers as soon as you expand into new markets and locations. You could end up creating too much inventory that no one is willing to buy.

Underestimating Growth of Employees

While a lot of things get overestimated by new business owners before expansion, there are some things that they underestimate. Sometimes, business owners are not able to fully foresee their growth regarding employees.

They arrange new space to continue business operations in a new location without realizing that the growing number of employees will force them to expand their office space again. Not only is it inefficient but it could lead to a lot of hassle for the working employees if the expansion of office space takes place while they are working there.

Final Words

The most important thing to keep in mind when you have your own business, and you are considering expansion regarding business operations or product/service offerings, is patience. Always take your time before making a move because when you are a small business, you don’t have a lot of support to recover from huge financial losses like large enterprises do.

Home Based Business Success Secrets

Running a successful home based business can be challenging because as entrepreneurs we are constantly pushing the boundaries and breaking barriers.

But there are at least three key challenges that you will encounter as a home based business entrepreneur and in this article you will discover the best home based business success secrets that can fit.

The option of building a successful business out of your home can make “work” seem far less disheartening, matching convenience and controlled comfort with much less overhead.

Plus the added bonus is that the income potential is much higher as a business owner and you will not be trading time for a wage but instead creating leverage in your life and home based business. You can drive your kids to school in the morning and wake up at the time you want. And if you are thinking that running a home based business is too solitary, be sure to realize that home based business does not mean homebound.

In fact, you will find that many home based business companies do very well without any kind of retail office space, because they don’t depend on traffic off the street, but rather spreading their message out into the world for new customers to enjoy. So let’s dive in to what it takes to thrive with a home based business even during the recession while everyone else is crying in their soup.

Here are the three most daunting challenges and how to overcome them:

1- Lack of Focus: This is by far the biggest problem I see among novice home based business owners. See as entrepreneurs we naturally have a sort of “Shiny Object Syndrome” where we get easily distracted by time-sucking projects that often do not contribute to the bottom line. It’s imperative that you focus primarily on high-value activities that contribute to the businesses bottom line. One way to maintain higher control over this is by using a timer to work, and do pre-determined activities in 33 minute blocks. Then take 5-10 minutes break and resume with another 33 minute block of focused work. This strategy demands focus on high value activities and allows for time to rest and regenerate.

2- Mindset Shift: Many times as entrepreneurs we suffer from the shiny object syndrome referenced earlier and this can cause both a victim and consumer mindset. Both of these mindsets erode your ability to run a successful home based business because they are destructive. As a successful entrepreneur you will adopt a mindset of make it happen or else and focus your efforts on activities that add to the bottom line. Adopt a mindset of a marketer and business owner as if you had invested $100,000 into your home based business, rather than buying each and every offer that pops up in your inbox.

3- The Right Formula: The last challenge in this article is having the right formula to success. Now, understanding the numbers of your business is very important because in order to reach your income projections you have to understand how many leads and sales it will take you each month and each week. Understanding the numbers is crucial in determining how to adjust over the course of the weeks and months of the year. Also, my advice in finding the right formula is to be selling something that can make big commissions so that it requires far less sales to hit your targets. This Top Tier model has allowed me to effectively double my existing online business just by adding one model.

The Best Internet Business

What Is The Best Internet Business?

There are several Web Host giants on the internet that provide private label rebranding to small business owners. This might be the best opportunity to “piggyback” on well-established businesses if you are just starting out in internet marketing. This gateway for unlimited wealth is made possible due to the growing demand of digital marketing in regions that are outside the scope of these large corporations.

In order to gain a share of the market, these corporate web companies offer reseller plans to small businesses which take their products and services, rebrand them and sell to business owners at a profit. These products include domain name services, web hosting, online storage, business productivity software, and tools.

There is quite an advantage in being a small business retailer because one is able to customize their business at the local level and meet the demands of their growing market on the World Wide Web. Let’s look at the definition of digital marketing to understand why the demand has grown significantly over the past decades.

What Is Digital Marketing

Digital Marketing involves all functions that are geared toward promoting online business activities. This includes but is not restricted to products and services in subcategories such as Domain Name registration, web hosting, email marketing, web design and development, software applications, sales and marketing, social media marketing and consultation, and all medium through which businesses and individuals advertise and market their products online.

Retail Marketing

Retail Marketing refers to activities geared toward end users of a web-based business solution such as domain names registration, web design services, software apps for business and personal use, social media management, web hosting and other activities that promote online communication.

As the need for business solutions intensifies, business persons become increasingly concerned about meeting the demands of the online industry, and therefore the Pros and Cons of the internet business become relevant.

The Cons of Digital Marketing

One would think that the more customers you have, is the more profits you are likely to acquire but the truth be told, the more the business will become more challenged due to competitors, need for online bandwidth, web creativity, uniqueness, and need for customer service due to increase in customer queries and the need for technical support.

The Pros of Digital Marketing

Fortunately, some web hosting reseller business plan come with independent customer service team that manages concerns and queries of clients on their behalf. Another positive thing about being a domain reseller is the handling of payments and processing of sales. As a web hosting reseller, you are given the opportunity to re-price your products to earn commissions from your own business.

Another pro for being a reseller is the fact that starting your digital marketing business does not require an exorbitant startup cost nor high overhead expenses to operate effectively, nor initial products, compared to other online ventures. Products are sold through the distributors but your private label is displayed discreetly in the sales operation and therefore your business receives the credit!

How Do I Become A Web Hosting Reseller?

There are two ways to become a Web Hosting Reseller and Domain Name Registrar. One can sign up as an affiliate or an actual reseller.

An affiliate gets a commission from advertising online products that the Web company (suppliers) market, using links and codes on approved websites.

Reseller uses their own brand to market the Web Company’s products (supplier) and services at a higher rate of returns. End users see the reseller’s products and services as their company’s brand and not the Web Company’s image.

Affiliates display the name of the wholesaler or provider (Web Company) through banner advertisements and other forms of internet marketing, similar to a franchising arrangement.

How Much Does It Cost To Run A Web Hosting and Domain Name Business?

It is very alarming to find out the actual cost of starting your own internet business. The subscription for a reseller license varies from $89-$499 annually and it depends on the provider or web company. Most persons prefer to do business with Web companies that offer a variety of affordable products and services. Once a business plan is purchased, one can start selling immediately online.

Some Web companies provide a retail storefront with the domain name search field. Other features include the following:

Dedicated customer service team support for your clients
Marketing software to assist in promoting their brand online. Resellers are expected to purchase their domain name to start promoting their retail internet business.

Start Up Cost

There is no mandatory startup cost for a Web Hosting Business, however, it is suggested to start with at least $300-$500. This would include the cost of the subscription plan, a domain name for your business idea, a web designer to customize the storefront (optional), business cards and other marketing paraphernalia to help provide greater access to your target market.

There is reseller’s support, community pages, manuals and online support to help you succeed in making your business profitable.

The process of starting an internet business is simple, and while there could be challenges in securing a viable market in your region, there are no geographical restrictions. Savvy business operators stand a greater chance to earn real attractive residual income annually, in a relatively short time.

What To Expect as a Web Hosting Reseller

Business owners are able to tap into the tremendous wealth of the digital marketing business industry as it is one that never sleeps! It has often been said that you can earn money while you sleep, and since the internet generates over a billion dollars per day, more and more persons have experienced this reality. Currently, there are Web Hosting Resellers who are making $10-30K (USD) per month.

Once you are patient, open to exploring online business opportunities, and enthusiastic about providing internet business solutions for individuals and companies, then you are ready to build your digital empire.

After reading this article, if you are asked: “what is the best internet business?” I am quite sure that you are in a better position to give a logical answer. However, you must realize that no matter how skilled one is, or how many customers he or she has garnered to do business with, real success comes through smart teamwork. The late Steve Jobs once quoted; “Great things in business are never done by one person, they are done by a team of people.”

Are you thinking of becoming a Web Hosting and Domain Name Reseller? Then check out Digital Marketing Business. We provide digital marketing solutions for individuals and corporate clients who want to manage a lucrative internet business.